Mays v. Three Rivers Rubber Corp

352 N.W.2d 339, 135 Mich. App. 42
CourtMichigan Court of Appeals
DecidedJune 4, 1984
DocketDocket 69025
StatusPublished
Cited by17 cases

This text of 352 N.W.2d 339 (Mays v. Three Rivers Rubber Corp) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mays v. Three Rivers Rubber Corp, 352 N.W.2d 339, 135 Mich. App. 42 (Mich. Ct. App. 1984).

Opinion

M. J. Kelly, P.J.

Plaintiff appeals as of right from an order of the trial court dismissing his complaint and granting summary and accelerated judgment in favor of defendants Three Rivers Rubber Corporation and Fireman’s Fund Insurance Company. The remaining defendants had been dismissed pursuant to a settlement agreement at the trial court level.

Plaintiff is a former employee of Three Rivers and has been disabled since December 23, 1970, with a condition referred to by the parties as "TDI asthma”. Three Rivers workers’ compensation carrier, Fireman’s, voluntarily paid plaintiff workers’ compensation benefits until April 14, 1971, at which time benefits were terminated based on *45 what plaintiff contends was a fraudulent diagnosis by Dr. Paul R. Radgens. Plaintiff subsequently petitioned for reinstitution of workers’ compensation benefits and, after a contested hearing, was awarded benefits by a hearing referee in a decision rendered May 19, 1976. That decision was affirmed by the Workers’ Compensation Appeal Board (WCAB) on December 28, 1978.

Plaintiff also filed suit for benefits due from the Insurance Company of North America (INA), Three Rivers’ group disability insurance carrier. Judgment was entered on June 27, 1977. See Mays v Ins Co of North America, 407 Mich 165; 284 NW2d 256 (1979).

Plaintiff filed this action on May 28, 1980, alleging that defendants had in concert and collusion conspired to deprive him of workers’ compensation and disability benefits due from Three Rivers and its insurers, Fireman’s and INA. Plaintiff’s three-count complaint alleged that: (1) all of the defendants had conspired to deprive him of the benefits; (2) defendant employer and defendant insurance companies had breached their contractual and statutory duty to pay benefits thereby causing mental distress to plaintiff; and (3) by their collusive actions, all of the defendants had intentionally inflicted emotional distress upon the plaintiff.

Three Rivers and Fireman’s responded to plaintiff’s complaint with motions for accelerated and summary judgment. In. an opinion dated March 19, 1982, and by order dated July 2, 1982, the trial court granted defendants’ motion for accelerated judgment as to Counts I and III on the ground that these counts were barred by the statute of limitations. The trial court also granted summary judgment in favor of defendants on Count II on the ground that breach of a commercial contract does *46 not give rise to a right to recover damages for mental and emotional distress.

Plaintiff's motions for rehearing and to file an amended complaint were denied and plaintiff appeals as of right. We affirm the trial court’s grant of summary judgment on Count II for the reason relied upon below and affirm the trial court’s grant of accelerated judgment on Counts I and III but for the reasons stated herein.

Plaintiff first challenges the trial court’s grant of accelerated judgment on Counts I and III, claiming that the trial court erred in calculating the date upon which these claims accrued. All of the parties and the trial court agree that the applicable limitation period is three years as provided under MCL 600.5805(8); MSA 27A.5805(8), formerly MCL 600.5805(7); MSA 27A.5805(7). Plaintiff argues that his claims of conspiracy and intentional infliction of emotional distress did not accrue until the appropriate forums had determined that his injury was in fact compensable under the policies with Fireman’s and INA. Plaintiff relies upon the date the WCAB affirmed the hearing referee’s award of benefits, December 28, 1978, and the date the circuit court found INA liable for disability benefits, June 27, 1977. Given these dates of accrual, plaintiff’s complaint of May 20, 1980, would have been timely.

The trial court agreed in principle with plaintiff’s position but found that his injury had been determined compensable under Three Rivers’ workers’ compensation policy as of the issuance of the hearing referee’s award on May 19, 1976. Since plaintiff had filed this action nearly four years after the issuance of the hearing referee’s award, the trial court determined that his claims of conspiracy and intentional infliction of emo *47 tional distress were barred by the provisions of the three-year statute of limitations.

We agree with the trial court’s conclusion that plaintiffs claims were barred by the applicable statute of limitations but we do not entirely agree with the trial court’s rationale. Both the trial court and plaintiff cite Broaddus v Ferndale Fastener Division, Ring Screw Works, 84 Mich App 593; 269 NW2d 689 (1978), lv den 403 Mich 850 (1978), as dispositive on the issue of the accrual of plaintiffs claims. In Broaddus, as in the instant case, plaintiff alleged collusion and conspiracy to deny benefits among his employer and the employer’s workers’ compensation and group disability insurance carriers. The issue on appeal was whether plaintiffs claim was barred by the exclusive remedy provision of the workers’ compensation act, MCL 418.131; MSA 17.237(131). In determining that the claim was not barred, this Court stated:

"While it is true that plaintiffs must prevail on a showing that the physical injuries were compensable prior to showing that defendants acted in collusion to deny those beneñts, a subtle yet crucial distinction must be made clear. Plaintiffs are not seeking as damages in this lawsuit the compensation benefits they alleged were required to be paid from July 2, 1973, to December 17, 1973. They are seeking, in part, separate damages for emotional distress caused by the alleged intentional and wrongful denial of these compensation benefits. It is the emotional and mental injuries which are the subject of the lawsuit, and which are claimed by plaintiffs to be not compensable under the act and thus actionable in a common-law tort suit.” (Footnote omitted; emphasis added.) 84 Mich App 599.

Plaintiff argues, and the trial court so held, that the above emphasized language requires, as an *48 essential element of a conspiracy claim such as this, a decision by the appropriate forum that the disputed injury is compensable under the particular insurance plan at issue. Plaintiff argues that the appropriate forum in this case is the WCAB, while the trial court held that the appropriate forum was the referee’s hearing. .

We do not agree that Broaddus requires a favorable judicial or quasi-judicial decision as an essential element of a claim of conspiracy to deny benefits. Instead, the essential elements of a civil conspiracy are (1) a concerted action (2) by a combination of two or more persons (3) to accomplish an unlawful purpose (4) or a lawful purpose by unlawful means. Fenestra, Inc v Gulf American Land Cdrp, 377 Mich 565, 593; 141 NW2d 36 (1966). See also Zmija v Baron, 119 Mich App 524, 537; 326 NW2d 908 (1982) (Judge Walsh’s partial concurrence). The language in Broaddus

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Bluebook (online)
352 N.W.2d 339, 135 Mich. App. 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mays-v-three-rivers-rubber-corp-michctapp-1984.